Study On The Impact Of Inter-industry Factor Alloction On China's Economic Growth

Since 1978,China's economy development has been rapid,and now China is the second largest economy in the world.However,in recent years,the speed of economic growth has decelerated remarkably,and serious problems such as unreasonable allocation of factors and structural imbalance have arisen in economic development.How to adjust the economic structure,promote the effective allocation of labor force,capital and other factors of production,and transform economic development mode is a key problem to search the driving force of our country future economic development.In theory,factor allocation is an important source of economic growth.Whether factor allocation is reasonable directly affects the level of total factor productivity,and then affects economic growth.Based on Provincial Panel Data of China's three industries from 2002 to 2016,this paper uses multisectoral growth accounting method to decompose the structure of China's total factor productivity,separates the influence of the change of inter-industry factor allocation on total factor productivity,i.e.the effect of factor allocation structure,and reveals the flow of labor factors and capital factors among the three industries on China's economic growth.Influence.Empirical research shows that the total factor allocation structure effect among the three industries in China is positive from 2002 to 2016,that is,the flow of factors among the three industries improves total factor productivity and promotes China's economic growth.In terms of sub-factors,the structural effect of labor factor allocation is positive,while that of capital factor allocation is negative.The positive effect of factor allocation on economic growth mainly comes from labor factors.The transferring effect of labor force from primary industry to secondary and third industries has brought about the improvement of total factor productivity and promoted the economic growth of our country.But the capital factor flows from the tertiary industry to the secondary industry with lower relative productivity,which reduces the total factor productivity and hinders the economic growth of our country,that is,the allocation of capital factor among the three industries is unreasonable.In terms of time trend,this irrationality mainly occurred before the financial crisis in 2008.Since then,the effect of capital factor allocation structure has been significantly positive,and the structure of capital factor allocation is becoming more and more reasonable.Further,in terms of sub-region,the factor allocation structure in the central region has the most significant impact on economic growth,while the effect of the factor allocation structure in the central region is significantly negative,and its level is obviously higher than that in the eastern and Western regions.On the basis of the empirical results,the paper analyses the causes of the unreasonable allocation of factors,and puts forward some policy suggestions to promote economic growth in light of China's actual situation.